Personal consumption expenditures were little changed during December (3.2%
y/y) following a revised 0.5% November increase, initially reported as 0.3%. A
0.1% rise had been expected in the Action Economics Forecast Survey. When
adjusted for a slight dip in prices, spending rose 0.1% (2.6% y/y after a 0.4%
increase. Notable caution was exhibited when it came to product spending.
Durable goods purchases fell 0.9% (+3.5% y/y) following a 1.5% jump. Motor
vehicle purchases were reduced 3.2% (+0.2% y/y), reversing all of the November
surge. Home furnishing & appliance buying remained unchanged (3.6% y/y)
after two months of 0.2% increase. Spending on recreational goods & vehicles
edged up 0.1% (6.4% y/y) following six months of strong increase. In the
nondurable goods sector, clothing purchases declined 0.7% (+0.8% y/y), off for
the third month in the last four. Services spending picked up some of the slack
with a second straight 0.4% rise (4.1% y/y). A 1.9% jump (4.7% y/y) in
recreation services spending paced the increase. That was followed by a 1.0%
gain (6.2% y/y) in hotels & restaurants. Lower energy prices afforded this
strength as housing & utilities spending fell 0.2% (+2.9% y/y).

The personal savings rate improved to 5.5% from 5.3%, earlier reported as
5.5%. The rate remained nearly the highest since 2012. Personal saving increased
15.3% during the last twelve months. During all of 2015, the personal savings
rate averaged 5.2%, the highest level in three years.